CARD: Center for Agricultural and Rural Development CARD home Iowa State University homepage USDA Policy Research Center Research at CARD

CARD: Center for Agricultural and Rural Development

Eco-Labels and International Trade in Textiles

Wesley Nimon, John C. Beghin
June 1999  [99-WP 221]

The authors provide a formal analysis of the welfare and trade implications of eco-labeling schemes. They present a simple model of vertical (quality) differentiation that captures stylized features of the textiles market in which trading takes place between an industrialized North (domestic) and a developing South (foreign). The paper investigates several labeling scenarios--labeling by North, labeling by 130th North and South, and harmonization of 170th labels--and draws conclusions about their impact on consumers.

Full Text 241 kB